North Carolina Down Payment Assistance Systems

Online Payments - These systems would be the Mortgage Credit Certificate along with the Down Payment Assistance System.

If you meet the requirements for one of these plans and also you purchase a property and December 1, 2009, you can ALSO be eligible for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? There is a First Time Home Buyer someone who has not owned a home within the past three years. This is precisely the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and moderate incomes. The MCC takes this a step farther.

In case you are eligible for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your own federal income taxes on your mortgage. You are able to save around $2,000 on your taxes.

You'll have the ability to join this, should you qualify for the MCC, for 2009. This may reduce the tax liability of a buyer's .

Who qualifies for an MCC is based on your income and also the price of the house you are purchasing. Household income means the “gross income of the mortgagor and any other man expected to reside in the dwelling who is 18 years old or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Cost Limits New House $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing prices might be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay up to .

This plan has stricter income limitations than the MCC program outlined above. Like the MCC application, it may be used together with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nevertheless, can not be used in conjunction with all the MCC. This really is an either or situation.

The income and house price limitations that apply in Orange, Durham and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Cost Limits New House $210,000 Existing Residence $210,000